https://www.taxtmi.com/caselaws?id=445551 The ITAT Delhi allowed the assessee's appeal against CIT(A)'s disallowance of non-operating and non-allocable expenses. The tribunal held that CIT(A) exceeded jurisdiction by raising new matters not considered by AO during assessment. The assessee, engaged in management consultancy services, had legitimately incurred expenses for business expansion into transportation maintenance and operations, including successful bidding for Indore BRT bus operations. The tribunal found that non-operating expenses (40-49% historically) were genuine business expenditure for exploring new ventures. Personnel expenses, finance costs, and depreciation disallowances were also deleted as these were incurred for legitimate business purposes. The addition under section 68 regarding sundry creditors was deleted as subsequent payments proved genuineness of liabilities. en-us Wed, 08 Nov 2023 00:00:00 +0530 Fri, 10 Nov 2023 08:45:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445551 The ITAT Delhi allowed the assessee's appeal against CIT(A)'s disallowance of non-operating and non-allocable expenses. The tribunal held that CIT(A) exceeded jurisdiction by raising new matters not considered by AO during assessment. The assessee, engaged in management consultancy services, had legitimately incurred expenses for business expansion into transportation maintenance and operations, including successful bidding for Indore BRT bus operations. The tribunal found that non-operating expenses (40-49% historically) were genuine business expenditure for exploring new ventures. Personnel expenses, finance costs, and depreciation disallowances were also deleted as these were incurred for legitimate business purposes. The addition under section 68 regarding sundry creditors was deleted as subsequent payments proved genuineness of liabilities. Case-Laws Income Tax Wed, 08 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445551